AOL executives sell some shares

JonFriedman

NEW YORK (CBS.MW) -- During the past three weeks, AOL Time Warner senior executives have sold some 3.9 million shares of the media and Internet company, formed Jan. 11 by the merger of America Online and Time Warner.

AOL Time Warner Inc.
AOL
is the largest Internet and media company in the world.

AOL shares fell $1.60 to $43.30 Friday morning, continuing a descent that began after the companies announced their plans to merge back on Jan. 10, 2000. The AOL shares are off sharply from their 52-week high of $74.63.

The executives took advantage of a "window" period, which, according to the company's regulations, is the only time they are allowed to sell their stock. The window opened Feb. 2 and puts no limits on how much stock the insiders can sell. The most recent window, last summer, included restrictions on the number of shares that could be sold. The last unrestricted window opened in October 1999, three months before the Time Warner deal was unveiled.

The executives have sold small percentages of their AOL Time Warner stock and have acted for routine financial-planning purposes, AOL spokesman Jim Whitney said Friday from the company's Dulles, Va., headquarters.

"It is typical for AOL executives to sell shares during the company's open windows as part of their long-term personal financial planning," Whitney said.

Market followers pay close attention to companies in which executives disclose that they have begun to sell meaningful percentages of their stock holdings.

Just as it is considered to be a positive stock-market development when a company announces a stock-repurchasing plan, it can be discouraging to investors when they see officials shedding large amounts of shares in the company. Whitney said this wasn't the case at AOL.

AOL Chief Financial Officer J. Michael Kelly last week sold 200,000 shares worth about $9.3 million, according to a registration filing with the Securities and Exchange Commission. The shares accounted for almost 4 percent of his holdings, leaving him with 5.4 million shares, including options, Whitney said.

Director James Barksdale, with Sarah Barksdale, also shed 200,000 shares at a market value of $9.4 million, the SEC disclosed. The Barksdales retain 6.5 million shares, Whitney said.

The largest spree of recent insider selling, each for 1 million shares worth approximately $50 million, was carried out in the past two weeks by Chairman Steve Case, Vice Chairman Ted Turner and co-Chief Operating Officer Robert Pittman. Case has 30.2 million shares, and Pittman holds 15.6 million shares following the selling actions.

Turner's sale of 1 million shares stood for less than 1 percent of his stake, giving him 156.6 million shares. Looking at the trading in AOL shares, Turner's stake was worth $6.9 billion. Turner sold his shares to fund philanthropic activities, Whitney said.

Other insiders who recently sold shares were two executive vice presidents, Mayo Stuntz and George Vradenburg.

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